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WSJ's Brooks: Traders Weary of Nasdaq Outages

8/22/2013 4:04PM

Trading resumed in Nasdaq Stock Market-listed securities, more than three hours after an abrupt halt in trading blamed on an unexplained technical issue paralyzed a large chunk of the U.S. stock market. Rick Brooks has details on The News Hub. Photo: Getty Images.

This transcript has been automatically generated and may not be 100% accurate.

... the the ... the Nasdaq reopens with minutes to splash in the trading day after suffering an outage caused by an unexplained The Technical Blanche love that and mall ... right and right now on the New Saab good afternoon and welcome I'm Simon Constable ... joining me now ... is the will Street dolls the death of the money and investing editor Rick Brooks with ... the government is less often ... thank you for food thing is that ... LCH this is a rare thing aiming to run ... well we're not where it should never happen ... that should never have now or ever enough not enough he should never happen and I think the consensus view today from traders is a you kidding me this is happening again ... aam ... it's bad enough that it was three hours ... but he was a three hour black all ... in which he took ... too long in the minds of lots of people to actually hold all the trading ... aam ... and are still explanation of what happened ... what the duck tape was the domestic somehow applied to the system so that stocks actually could resume training in an orderly fashion ... or or even else should point out the Nasdaq isn't entirely electronic exchange there is no trading flaunt governance specialists it can make quarterly markets like the new stock exchange has no ... floor wet people scream at each other ... and you know to do that rates manually it's it's all electronic is also the extent that ... there was a mess up in the Facebook IPO output which was ... good ... this is a black eye is not true in one of the crime ... yes ... and you can take this one back he noted also speaks to the on the ... interconnectedness of markets ... note the a aam ... the Aries is to think about ... the ... Baron MasTec's toxin Options literally everywhere ... if you're on initial fine with Nasdaq listed stocks aam ... what what bad lessons for that that that's an pullbacks Mike soft wood talking not be used to be ... twenty years ago the mass I was small companies looking to grow fast and it was that it's considered like it should be a market melt it's not right ... none ... of it I think if you think about the spider ETF ETF in the Essen P five hundred there were ... a hundred and ten of those stocks to just stop trading ... so what was that thing really worth ... on a few initial find this afternoon what what's the net asset value of your neutral funds ... saw a huge move we retire this is entirely ... electronically traded the snow ... what we call on open outcry or what economists call the payback I it's it's the demand some women screaming in each of us or what is back in full from that still happens in some of the futures markets ... is its timing is ... said to bring them back and will now be a better way to do it because ... I cant that we don't have flash crashes that because it's just you me screaming at each other ... well unlike the glitchy lineage DreamWorks ... you know that you just think about see the proliferation of of ... electronic exchanges dark pools ... of ... the largest among the largest time exchanges now are are names that we did mean you have an unheard of ten years ago yes ... we can go back to the way it was before combo but ... address ... you'll writes ... full week on continue having healthy kids and flat fascism fail IPO's ... and ... it being a mass that cannot be hearing how its a gives back to the the onus is on Nasdaq's explain what happened ... and to explain why won't happen again ... any onus is on the SEC's ... to do what it has said it will do repeatedly every time this when these breakdowns ... which he is ... forced exchanges to do a better job than next time ... aam we always seem to walk the next time until there is an ax ... okay so ... we know everybody's listening to to this listen to Red rocks just wasn't a report on this ... he's right you